Maine Approves 9.6% Decrease in Workers’ Compensation Costs

Maine has approved the insurance industry’s filing that will lower workers’ compensation insurance loss costs an average of 9.6%. The lower loss costs will go into effect for new and renewing policies as of April 1, 2025.

According to Superintendent of Insurance Bob Carey, approval of the National Council on Compensation Insurance (NCCI) filing could save the state’s employers approximately $27 million.

For 2024, loss costs in the state decreased 19%, saving businesses an estimated $55 million.

Individual insurers use the NCCI-approved loss costs when filing their own workers’ compensation rates with the state. Loss costs are based on prior experience and projected losses and benefit payments. Insurers may modify the NCCI loss costs using their own expense and profit factors in developing rates, which are subject to approval by the Bureau of Insurance.

Most Maine businesses will see a reduction in their workers’ compensation premiums. However, some businesses may pay higher rates if their experience differs materially from the average. The 9.6% decrease ranges from -6.5% to -10.7%, depending on the industry group.

According to the bureau, Maine’s reduction in loss costs is one of the largest in the country for 2025, among the 38 states that utilize NCCI’s services. NCCI is the advisory rating organization for insurance companies that offer workers’ compensation coverage.